nep-agr New Economics Papers
on Agricultural Economics
Issue of 2013‒10‒02
thirty-six papers chosen by
Angelo Zago
University of Verona

  1. Governance and upgrading in export grape global production networks in India By Sukhpal Singh
  2. Reallocating wealth? Insecure property rights and agricultural investment in rural China By Jessica Leight
  3. Working Paper 182 - Rising Food Prices and Household Welfare in Ethiopia: Evidence from Micro Data By AfDB
  4. Should forests be used as uncertain carbon sinks or uncertain fossil fuel substitutes in the EU Roadmap to 2050? By Elofsson, Katarina; Gren, Ing-Marie
  5. The Agri-food Situation and Policies in Switzerland By Peter Jarrett; Charlotte Moeser
  6. An Empirical Investigation of the Calorie Consumption Puzzle in India By Deepankar Basu; Amit Basole
  7. Disseminating New Farming Practices among Small Scale Farmers: An Experimental Intervention in Uganda By Tomoya Matsumoto
  8. Reproductive behavior of landless agricultural workers, small farmers, and the economic elite in the historical Krummhörn region [East Frisia, Germany, 1720-1870] By Kai P. Willführ; Charlotte Störmer
  9. Efficiency and unbiasedness of corn futures markets: New evidence across the financial crisis By Chiara Pederzoli; Costanza Torricelli
  10. Key determinants of effective partnerships: The case of partnerships between lead firms and farmers in pineapple value chains in Uganda and Kenya By Robert Goedegebuure; Kennedy Ssejjemba; André de Waal
  11. Irrigation System in Indian Punjab By Singh, Inderjeet; Bhangoo, Kesar Singh
  12. Effect of Conflict on Dietary Energy Supply: Evidence from Cote d’Ivoire By Saumik Paul; Andrew L. Dabalen
  13. Conservation Fees in the Kgalagadi Transfrontier Park between Botswana and South Africa in the Presence of Land Restitution By Dikgang, Johane; Muchapondwa, Edwin
  14. Low-fat, light, and reduced in calories: Do these claims really lead to an increase in consumption? By Versluis, I.; Franses, Ph.H.B.F.
  15. Economic cooperation despite of political conflict: Israeli traders’ perception of Israeli-Palestinian food trade By Geesche M. Merkle; Rico Ihle; Yael Kachel; Ulf Liebe
  16. South African horticulture: opportunities and challenges for economic and social upgrading in value chains By Stephanie Barrientos; Margareet Visser
  17. Capabilities, costs, networks and innovations: impact of mobile phones in rural India By Balwant Singh Mehta
  18. Revisiting the 'cotton problem' - a comparative analysis of cotton reforms in Sub-Saharan Africa. By Delpeuch, C.; Vandeplas, Anneleen
  19. Gender production networks: Sustaining cocoa-chocolate sourcing in Ghana and India By Stephanie Barrientos
  20. Why policies fail? An institutional model explaining success and failure factors of rural development policies in Europe By Mantino, Francesco
  21. Neighbourhood effects and social behaviour: the case of irrigated and rainfed farmeres in Bohol, the Philippines By Tsusaka, Takuji W.; Kajisa, Kei; Pede, Valerien O.; Aoyagi, Keitaro
  22. Moving from Concept to Implementation: The Emergence of the Northern Everglades Payment for Environmental Services Program By Shabman, Leonard; Lynch, Sarah
  23. Biofuels, Economic Growth, and the External Sector in Ethiopia: A Computable General Equilibrium Analysis By Ferede, Tadele; Gebreegziabher, Zenebe; Mekonnen, Alemu; Guta, Fantu; Levin, Jörgen; Köhlin, Gunnar
  24. Risk Perception, Choice of Drinking Water, and Water Treatment: Evidence from Kenyan Towns By Onjala, Joseph; Ndiritu, Simon Wagura; Stage, Jesper
  25. Quantitative Analysis of the "Rumor-based Economical Damage" for Agricultural, Forestry and Fishery Products Caused by Tokyo Electric Power Company Fukushima No. 1 Nuclear Power Reactor Accident (Japanese) By KAINOU Kazunari
  26. Poverty and local linkages in the tourism value chain: a study of upland economies in China and India By Dev Nathan; Govind Kelkar; Yang Fuquan; Yu Yin
  27. Is What You See What You Get? The Value of Natural Landscape Views By Walls, Margaret; Kousky, Carolyn; Chu, Ziyan
  28. The Return-Volatility Relation in Commodity Futures Markets By Carl Chiarella; Boda Kang; Christina Sklibosios Nikitopoulos; Thuy-Duong To
  29. The impact of microcredit on child education: quasi-experimental evidence from rural China By Jing You; Samuel Annim
  30. Contract Teachers: Experimental Evidence from India By Karthik Muralidharan; Venkatesh Sundararaman
  31. Using Common Features to Understand the Behavior of Metal-Commodity Prices and Forecast them at Different Horizons By Issler, João Victor; Rodrigues, Claudia; Burjack, Rafael
  32. Floodplain Conservation as a Flood Mitigation Strategy: Examining Costs and Benefits By Kousky, Carolyn; Walls, Margaret
  33. Industrialization and Development Strategies in the 21st Century: Towards Sustainable Innovation Systems By Khan, Haider
  34. Coagglomeration of formal and informal industry : evidence from India By Mukim, Megha
  35. International Linkages of Agri-Processed and Energy commodities traded in India By Sinha, Pankaj; Mathur, Kritika

  1. By: Sukhpal Singh
    Abstract: Abstract Global production networks (GPNs) are the norm in many export sectors of developing world economies like India. High-value crops, including horticultural crops and produce, are seen as candidates for exploiting global market opportunities. Indian agriculture and agribusiness are being increasingly incorporated into these GPNs. However, understanding of the dynamics and implications of this incorporation is limited in terms of research and documentation, especially from a smallholder and worker perspective. Given the smallholder dominance of the farm sector in countries like India, it is important to understand the organization and dynamics of GPNs for livelihoods of farmers and other value chain workers in terms of upgrading opportunities. It is true that global value chains (GVCs) or GPNs can be vehicles for achieving primary producer and worker wellbeing, but, at the same time, traditional pressures of costs and efficiency in competitive markets can also lead to pressures for a ‘race to the bottom’ in terms of labour standards in farms and factories. This paper examines the GPNs of fresh grapes for export to supermarkets. It aims to understand the significance of standards in farms and packhouses in buyer-driven GPNs. It relies on primary case studies of exporting firms; packhouse operators and facilitators; and supplying farmers, as well as workers on farms and in packhouses. It examines the nature of smallholder inclusion and the labour linkage in these global food networks, especially labour conditions at work, that is, in packhouses and farms, and the gender dimensions of labour use. It finds a prevalence of standards, including Globalgap, at some levels in these GPNs, but these are not enforced at the lower ends of the networks, that is, on farms. Small producers are able to participate in GPNs, either through membership of a cooperative or a primary marketing organization (PMO) and are often supported by public agencies in many ways. Given the increasing feminization of farm and agro-processing work in these production networks, there are issues of gender differentiation and discrimination and gendering of tasks, alongside issues of work conditions and labour rights. There has been economic upgrading of facilitators and farmers in terms of higher volumes of business and more exportable produce, and of some categories of workers, like those in packhouses, in terms of better wages and facilities, but social upgrading is not that common. The paper tries to understand the above issues in terms of global and local factors, to provide insights to help generate more relevant standards, governance and upgrading possibilities.
    Date: 2013
  2. By: Jessica Leight (Williams College)
    Abstract: This paper evaluates the impact of village-level land reallocations in China on household economic outcomes. Since land was decollectivized in China in 1983, village leaders have implemented regular forced reallocations of land designed to enhance intravillage equity and attain other policy goals. I estimate the impact of insecure tenure using the past history of land shifts as an instrument for current tenure insecurity, and find that an increase in the probability of losing the current plot yields a decrease in agricultural inputs and production of around one standard deviation. Though the costs of insecure tenure are high, structural estimates of the varying cost of reallocation across different villages suggest the choice to reallocate does reflect an optimizing process on the part of village officials, who reallocate where the net benefit is larger. However, the observed pattern of reallocations would be optimal only given an objective function for the village leader that places an extremely high weight on equity, and even given this objective function, there is evidence that village leaders may be making some costly mistakes.
    Date: 2013–05
  3. By: AfDB
    Date: 2013–09–23
  4. By: Elofsson, Katarina (Department of Economics, Swedish University of Agricultural Sciences); Gren, Ing-Marie (Department of Economics, Swedish University of Agricultural Sciences)
    Abstract: This study investigates the contribution of forest carbon sequestration to a cost-efficient EU climate policy from 2010 to 2050 under conditions of uncertainty. We note that there is a trade-off between sequestration and alternative uses of forests such as bioenergy and timber production. A dynamic and probabilistic cost-minimization model is developed, which includes fossil fuel use within the EU Emissions Trading System and forest management in the EU-27 countries. The results suggest that if policy makers wish to meet emissions targets with 80% certainty, this goal will be eight times more expensive than when they were unconcerned with uncertainty. Policy makers’ risk attitudes affect forest management strategy primarily through the inclusion of wood products, where potential carbon emissions reductions are high but also highly uncertain. Excluding wood products from a climate strategy can be expensive if policy maker are insensitive to uncertainty.
    Keywords: uncertainty; carbon sequestration; bioenergy; wood products; climate policy; cost-efficiency; EU.
    JEL: Q23 Q28 Q48 Q54
    Date: 2013–09–12
  5. By: Peter Jarrett; Charlotte Moeser
    Abstract: This paper examines the heavily supported Swiss food and agriculture sector. It reviews some of the key features and trends in the sector and reveals its low relative labour productivity in international comparison. It describes the existing policy regime, including its various forms of support and border protection, and the new law that will take effect in 2014 and goes on to make recommendations covering budgetary, environmental and trade aspects of Switzerland’s policy regime. La situation et les politiques agro-alimentaires en Suisse Ce papier examine le secteur agricole et alimentaire suisse bien subventionné. It passe en revue plusieurs des traits marquants and des tendances sectoriels et révèle la faiblesse de la productivité relative du travail bas en comparaison internationale. Il décrit les politiques actuelles, y compris les multiples formes de soutien et de protection frontalière et la nouvelle loi qui entrera en vigueur en 2014 et procède à des recommandations couvrant ses aspects budgétaires, environnementaux et commerciaux.
    Keywords: protection, agriculture, subsidies, food, farm, support, Switzerland, Suisse, alimentation, agricole, protection, agriculture, subventions, soutien
    JEL: Q10 Q15 Q16 Q17 Q18
    Date: 2013–09–12
  6. By: Deepankar Basu; Amit Basole
    Abstract: Over the past four decades, India has witnessed a paradoxical trend: average per capita calorie intake has declined even as real per capita monthly expenditure has increased over time. Since cross sectional evidence suggests a robust positive relationship between the two variables, the trend emerges as a major puzzle. The main explanations that have been offered in the literature to address the puzzle are: rural impoverishment, relative price changes, decline in calorie needs, diversification of diets, a squeeze on the food budget due to rising expenditures on non-food essentials, and decline in subsistence consumption. In this paper we construct a novel panel dataset from household-level National Sample Survey data on consumption expenditure to test the "food budget squeeze" hypothesis. Our panel consists of 74 NSS "state-regions" over six time periods (1983, 1987-88, 1993-94, 1999-00, 2004-05 and 2009-10). We demonstrate a statistically significant negative effect of a rising share of expenditures on non-food essentials (health, education, transportation and consumer services), on calorie intake. We also construct a food price index directly from household-level expenditure data and show that real food expenditure has been stagnant in India since the late 1980s.
    Keywords: calorie consumption puzzle, India, panel data
    JEL: I13
    Date: 2013–09
  7. By: Tomoya Matsumoto (National Graduate Institute for Policy Studies)
    Abstract: We used a randomized control trial to measure how the free distribution of hybrid seeds and chemical fertilizers for maize production affected their adoption by small-scale farmers in the subsequent seasons. Information on their demand for the same inputs was collected through sales meetings which we organized in 2009 and 2011 where the inputs were actually sold. It revealed that the demand for the inputs of the free-input recipients was significantly higher in both 2009 and 2011 than that of non-recipients; that of the neighbors of the recipients fell in-between. The initial treatment assignment has a persistent influence on the farmers' demand over the two years whereas the difference between the free-input recipients and their neighbors has been reduced to some extent. The reduction of their gap in the application level of fertilizers is partly driven by social learning through information networks. However, there was no clear evidence of learning effects from peers on the demand for the hybrid seeds. One possible explanation of these mixed results is due to slow dissemination of the new inputs with low profitability. (JEL O13, O33, O55)
    Date: 2013–09
  8. By: Kai P. Willführ (Max Planck Institute for Demographic Research, Rostock, Germany); Charlotte Störmer
    Abstract: The historical population of the Krummhörn region [1720-1850] in the northwest of Germany can be characterized as a non-industrialized, pre-capitalist agricultural society. Around 70 percent of the families had either no land or owned farms too small to ensure subsistence, and therefore worked on the big farms owned by the families of the economic upper class. The economic elite made up around 15 percent of the population, but they owned 80 percent of the farm land. The remaining 15 percent of the population did not belong to the elite, but owned estates that were big enough to support their families, and were therefore economically independent. During the study period there were no famines or wars, and mortality, especially of infants, was very low compared to mortality in other German regions. Furthermore, the population was not naturally fertile. As there were on average only four to five births in complete families, the population was barely growing. In this paper, we investigate how the reproductive behavior of these families was affected by their social status and by short-term fluctuations in their socioeconomic conditions. Poisson and Cox regression models are used to analyze the age at first reproduction, fertility, the sex ratio of the offspring, sex-specific infant survival rates, and the number of children. In addition, we investigate how fluctuations in crop prices affected seasonal-specific infant mortality and fertility. We also include information about the seasonal climate that may had an effect on crop prices as well as on infant mortality via other pathways. In sum, we find that reproductive success (the number of children born and the number of children surviving to adulthood) was correlated with social rank. Individuals from high-ranking families had more births and a higher number of surviving children. We also find that social strata-specific constraints were important factors: birth rank and sex-specific reproductive values affected both infant mortality and the female age at first marriage differently in the different social strata. High crop prices were associated with a rise in infant mortality in the autumn and the winter, which may have been a reflection of a tense situation among the landless. Meanwhile, warm or hot weather was associated with an increase in child mortality in the summer, possibly because of the increased risk of infection with malaria, a common disease in the Krummhörn region at that time.
    Keywords: Germany, family reconstitution, historical sources, reproductive behavior, social stratification
    JEL: J1 Z0
    Date: 2013–08
  9. By: Chiara Pederzoli; Costanza Torricelli
    Abstract: Recent years witnessed commodity prices increases which have fostered research-works on their predictability and a renewed interest of practitioners and policy makers. The objective of this paper is to test the predictive ability of futures prices on the underlying spot prices by taking corn, which is one of the most important agricultural commodities in terms of trading volumes and for its role in the dietary regime of many countries. We consider the corn futures on the CBOT in the period May 1998-December 2011 so as to extend previous studies on this market and to assess a possible effect of the financial crisis. Our results do not emphasize a role for the latter and, although we do not find evidence of efficiency and unbiasedness, the futures corn price turns out to be the best predictor of the spot price if compared with most used alternatives.
    Keywords: futures prices, corn futures, efficiency, unbiasedness
    JEL: C53 G13 Q14
    Date: 2013–09
  10. By: Robert Goedegebuure (Associate Professor International Business at Maastricht School of Management MsM); Kennedy Ssejjemba (DBA candidate at MsM and lecturer at Makerere University, Uganda); André de Waal (Associate Professor at MsM and director of HPO Center, Netherlands)
    Abstract: Over the last decades partnerships have become a pervasive element in studies on the organization of social and economic activities at both national and international levels. It is worthy of note that notwithstanding the popularity of the concept as evidenced by the vast amount of articles on the topic, Barnes & Brown (2011) recently described partnerships as of poor theoretical appeal, under-defined, and poorly scrutinized. Their conclusion is mainly inspired by experiences in the area of economic development, as partnerships are explicitly mentioned in the Millennium Development Goals (goal eight refers to “global partnerships for development”). A loose definition of partnerships as linkages between independent organizations for achieving economic and social objectives includes partnerships that widely differ in terms of size, scope and complexity. Partnerships may range from the UN/Nike foundation for adolescent girls in developing countries; to multi-stakeholder approaches (between NGOs, local governments, multinational companies and farmers); and relatively simple agreements at local levels (Toyota’s partnerships with suppliers; farmers partnering with agricultural lead firms). It is striking that most of the literature focuses on the logic of types of partnerships while neglecting the effectiveness and its key determinants of partnerships. In this article we try to contribute filling this void by focusing on relatively simple bilateral partnerships between farmers and lead firms in the value chains of pineapples in Uganda and Kenya. Rather than focusing on the logic of the (type of) partnership per se, we use data on (i) the assessment of relevant partnership characteristics, (ii) the organizational strength of the partner, and (iii) the outcomes of the partnership in terms of their capacity to upgrade the farmers.
    JEL: L23 L25 Q12
    Date: 2013–09
  11. By: Singh, Inderjeet; Bhangoo, Kesar Singh
    Abstract: Punjab model of irrigation is characterized by excess demand for water for irrigation, coupled with unconstrained mining of groundwater, for meeting the food bowl requirements of the country. It is a model guided by populist political decisions than a sound economics. In the process, the model has provided the much needed food security to the country but has raised serious ecological and environmental concerns. This is a high time to analyze the irrigation system in its historical perspective and prescribe a policy framework for the future. The paper, covering the evolution of the system, evaluates the performance and delineates the policy options for the future.
    Keywords: Irrigation, Canal Water, Water Resources
    JEL: O13
    Date: 2013–09–29
  12. By: Saumik Paul (University of Nottingham, Malaysia campus (UNMC)); Andrew L. Dabalen (The World Bank)
    Abstract: In this paper we estimate the causal effects of conflict on dietary energy supply in Côte d’Ivoire. To identify the true impact of conflict, we use (1) pre-war and post-war household data, (2) the specific counts of conflict events across departments and (3) self-reported victimization indicators. We find robust and statistically significant evidence of households in the worst-hit conflict areas and individuals who are the direct victims of the conflict having lower dietary energy supply. The propensity score matching estimates do not alter the main findings. Other robustness checks including subsamples of households with children supports the existing findings.
    Keywords: Conflict, Food security, Nutrition, Evaluation, Africa
    JEL: I20 I3 D12 C40 H43 O15
    Date: 2013–09
  13. By: Dikgang, Johane; Muchapondwa, Edwin
    Abstract: This paper estimates the visitation demand function for Kgalagadi Transfrontier Park (KTP) in order to determine the conservation fee to charge South African residents to maximise park revenue. We conducted contingent behaviour experiments at KTP and three other national parks, which we assume are either substitutes or complements for visitors to KTP. Our random effects Tobit model shows that there is a wide variation in the own-price elasticities of demand between the parks, but they are generally not elastic. The cross-price estimates indicate that there is limited substitutability in visitation demand among the four parks. The study uses the unitary elasticity rule to demonstrate that there is a possibility of raising conservation fees to revenue-maximising levels at KTP, as well as the other parks, using methods such as a mandatory conservation fee increment or a community-bound voluntary donation above the regular conservation fee. Sharing conservation revenue with communities surrounding parks could demonstrate the link between ecotourism and local communities’ economic development, promote a positive view of land restitution involving national parks, help address South Africa’s heavily skewed distribution of income, and act as an incentive for the local communities to participate in conservation even more.
    Keywords: contingent behaviour, conservation fee, demand, land claim, national park
    Date: 2013–07–19
  14. By: Versluis, I.; Franses, Ph.H.B.F.
    Abstract: Recent experimental research has shown that light, low-fat and other claims that signal low calorie content can increase consumption and hence can be counter-effective. In this article we use detailed data from the Dutch National Food Consumption survey to determine the extent to which this increase in consumption can also occur outside an experimental setting. We investigate consumption of 36 different products, including dairy products, fats, and non-alcoholic beverages. Looking at both the consumption amount in grams per eating occasion and the consumption frequency over a period of two days, we find almost no evidence that more is consumed of “light†variants than of regular variants. For only 5 of the 36 products we find a consistent and significant higher consumption in grams of the “light†variant, while for 8 products, consumption frequency of the “light†variant is significantly higher. Moreover, for almost all of these products, we observe that in terms of calories, still less is consumed of the “light†variant than of the regular variant. We conclude that in real-life non-experimental settings “light†claims do not lead to increased consumption of the “light†products.
    Keywords: food intake;light;consumption volume;consumption frequency;energy intake;low-fat;nutrition claims
    Date: 2013–09–24
  15. By: Geesche M. Merkle (Georg-August University Göttingen); Rico Ihle (Georg-August University Göttingen); Yael Kachel (Israeli Ministry of Agriculture and Rural Development); Ulf Liebe (University of Cambridge)
    Abstract: The ongoing political conflict between Israel and the Palestinian territories results in an increasing physical separation and societal alienation of both conflicting parties. In some contexts such as trade ongoing cooperation exists. We provide a micro-level analysis of economic interactions between Israeli and Palestinian wholesale traders of fruits and vegetables. We use a unique dataset gathered by a quantitative survey among Israeli wholesale traders in order to obtain evidence on their perspectives on this economic exchange. Trading patterns show vivid economic exchange of mainly informal character. Logistic regressions suggest that education and the personal social network play vital roles for the existence of Israeli-Palestinian trading relationships. Israeli traders feel not affected by the conflict but wish for its quick settlement. A low level of transaction problems is reported. They are mainly caused by the political and security situation and by the payment behavior of the Palestinian trading partners. Daily contacts of economic agents lead to continuous economic cooperation despite of ongoing political conflict and improve the perception of the actors of the other party.
    Keywords: food trade; Middle East; quantitative survey; political conflict
    JEL: F14 Q17 Z13
    Date: 2013–09–26
  16. By: Stephanie Barrientos; Margareet Visser
    Abstract: Abstract Horticulture value chains in South Africa are undergoing a process of rapid transformation. The sector is significant in the generation of agricultural GDP, employment and exports. European supermarkets have long been an important destination for fruit. Supermarkets source through coordinated value chains, with stringent requirements and have driven the rise of private standards. These improve quality but increase the commercial pressures and costs for growers. The expansion of South African supermarkets and of South-South trade in Sub-Saharan Africa, Asia and the Middle East are providing new channels for fruit and vegetables. These markets also require standards that are generally less stringent than European supermarkets and are paying comparable prices (taking cost into account), mainly focusing on product quality. Social standards are largely demanded by European supermarkets alone. Growers now have a wider range of buyers, and European supermarkets can no longer be assured of automatic availability of quality produce. Employment in the fruit sector is segmented between regular and casual workers. Regular workers have seen improvements in working conditions. In parallel casualisation has increased. It reduces labour costs but workers have greater insecurity of employment, lower remuneration and rights. Growers and packhouses need better educated and skilled workers to manage complex quality requirements of different supermarkets and improve efficiency. Agricultural work has low esteem, and the sector faces a serious shortage of skilled labour despite rural unemployment. Current public and private provision of training is insufficiently resourced to generate an adequate pool of skilled labour. Growers and workers need better returns to ensure the resilience of quality horticulture value chains to supermarkets. Public and private policy needs to enhance the skills and empowerment of workers, and support social provision to increase the appeal of working in horticulture.
    Date: 2012
  17. By: Balwant Singh Mehta
    Abstract: Abstract India did not participate in the landline phone revolution but has seen an unprecedented growth in mobile phones, with over 919 million subscribers by the end of March 2012, making it second only to China in this sphere. The tele-density in rural India, where nearly 69 percent of the total population lives, grew from below 1 percent in 2000 to around 40 percent in 2012. In these areas, people face several developmental constraints, such as low literacy, poor healthcare facilities, low per capita income, a high degree of poverty and problems related to poor infrastructure. Mobile phones can facilitate need-based and user-centric information and services at a cost that is affordable to India’s rural population, which was hitherto unreachable. Given this context, this study explores the socioeconomic impact of mobile phone usage in rural areas on the basis of a field survey conducted in two states of India: Punjab – a relatively developed state – and Bihar – a relatively underdeveloped state. The field survey revealed that mobile phones helped users gather information for both agricultural and non-agricultural purposes, as well as enabling them to keep in touch with their relatives and migrant family members. Mobile users benefit by obtaining timely information on a variety of subjects, including on employment opportunities and higher education for their children, by transferring funds and even by calling family members during emergencies. However, there is a marked difference in the usage of mobile phones among those in Punjab compared with those in Bihar. In developed areas, people were found to be early users of new technologies, reflected also in high usage of mobile value-added services (MVAS) and innovative uses like money transfer and agricultural information in Punjab. Meanwhile, a major and somewhat neglected dimension of mobile phone usage is that making communication substantially cheaper promotes social interaction. Multi-locational households with at least one migrant worker are increasing in numbers. Cheap mobile phones help such households keep in touch and remit money. Social relations can also cross traditional boundaries. The study also reveals that there are many innovations in the use of mobile phones, often carried out by users of different kinds, pointing to the importance of users in innovation processes.
    Date: 2013
  18. By: Delpeuch, C.; Vandeplas, Anneleen
    Abstract: The cotton sector has been among the most regulated in sub-Saharan Africa (SSA), and still largely is in West and Central Africa (WCA), despite repeated reform recommendations by international donors. On the other hand, orthodox reforms in East and Southern Africa (ESA) have not always yielded the expected results. This paper uses a stylized contracting model to investigate the link between market structure and equity and efficiency in SSA cotton sectors; explain the outcomes of reforms in ESA; and analyze the potential consequences of reforms in WCA. We illustrate our arguments with empirical observations on cotton sector performance.
    Keywords: sub-Saharan Africa; cotton reforms; self-enforcing contracts;
    Date: 2013
  19. By: Stephanie Barrientos
    Abstract: Abstract Transformation of global sourcing over recent decades has significant implications for gender relations of production in the developing world. Analysis of global production networks and value chains (GPN/GVC) provides important insights into the changing dynamics of global sourcing and its embeddedness within diverse societies and countries. However, the gender dimension of this process is often overlooked. Feminist analysis provides important insights into a changing gender division of labour within global production, but rarely links it to the commercial dynamics of GPN/GVCs. This paper develops a gender production network analysis to inform a comparative examination of gender production relations in cocoa. It draws on case studies in Ghana and India. It asks in what ways are GPN/GVCs bearers of gender transformation, and what are the implications for the sustainability of quality cocoa sourcing by chocolate manufacturers? The paper finds that gendered social norms and practices in both countries mean that women’s contribution to cocoa production has long been under-valued, with women largely relegated to the position of unpaid family or casual labour. However, within the gender division of labour women do play an important role in certain activities that are increasingly recognised in the industry as critical to ensuring good yields and quality production. These are of increasing importance to consumer-focused brand name chocolate companies. Recognition and support for women’s role could make an important contribution, both to the empowerment of women cocoa farmers and workers, but also to the future sustainability of quality cocoa sourcing.
    Date: 2013
  20. By: Mantino, Francesco
    Abstract: This paper intends to analyse which are the main mechanisms and factors which bring either to failure or to success rural development policies. This analysis has been done in four Italian regions and in five rural areas, in order to catch macro and “meso” dimensions of success and failure. This analysis take under consideration governance and rules as the main arena where the different stakeholders try to impose their influence and interests at stake. Factors of success and failure operate along the institutional chain starting from the EU to the local level. By their collective action they try to shape rules and governance structures in relation to the impact they perceive on the resource allocation and the transaction costs needed to access to policies
    Keywords: Rural development policies; Institutional analysis; Governance
    JEL: Q18 R58
    Date: 2013–07
  21. By: Tsusaka, Takuji W.; Kajisa, Kei; Pede, Valerien O.; Aoyagi, Keitaro
    Abstract: Artefactual field experiments, spatial econometrics, and household survey are blended in a single study to investigate how the experience of collective irrigation management in the real world facilitates the spillover of social behaviour among neighbours. The dictator and public goods games are conducted among irrigated and non-irrigated rice farmers in the Philippines. The spillover effect is found only among irrigated farmers. In the public goods game, punishment through social disapproval reduces free-riding more effectively among irrigated farmers. These indicate that strengthened ties among neighbours are likely to induce the spillover of social norms together with an effective punishment mechanism.
    Keywords: behavioural games, artefactual field experiments, spatial econometrics, dictator game, public goods game, irrigation, social norms
    JEL: C59 D01 Q25
    Date: 2013–07–19
  22. By: Shabman, Leonard (Resources for the Future); Lynch, Sarah
    Abstract: The Northern Everglades Payment for Environmental Services (NE-PES) program was launched in 2011 by the state of Florida. The NE-PES program was developed through the Florida Ranchlands Environmental Services Project (FRESP), a six-year collaborative effort (2005–2011) that engaged ranchers, government agencies, and environmental NGOs. Through FRESP, eight pilot water management projects were implemented on cattle ranches. The projects demonstrated how ranchland owners, as service sellers, could enter into contracts with a state agency buyer to provide the buyer-desired services of water retention (acre-feet) and/or nutrient load retention (lbs. of phosphorus or nitrogen). Innovative contract elements, based on the experience of implementing the pilot projects, developed by FRESP collaboration partners made the now operating NE-PES possible.
    Keywords: environmental services, payment for environmental services, environmental markets, Everglades
    Date: 2013–08–27
  23. By: Ferede, Tadele; Gebreegziabher, Zenebe; Mekonnen, Alemu; Guta, Fantu; Levin, Jörgen; Köhlin, Gunnar
    Abstract: In this study, we assess the economy-wide effects of biofuel investment in Ethiopia, with a focus on the external sector. The Government of Ethiopia has been revising its energy policy to switch from imported fossil oil to domestically produced biofuels, partly in response to climate change and partly in response to rising world oil prices, which leave oil-importing countries such as Ethiopia vulnerable to external oil price shocks. In Ethiopia, the value of oil imports relative to export earnings has increased over time, which has negatively impacted its balance of payments. Specifically, this paper assesses the implications of biofuels investment for growth and the external sector in Ethiopia using a dynamic recursive computable general equilibrium (CGE) model. The study is based on primary data collected from biofuel firms in Ethiopia and assumes that the amount of land is fixed in a given period. The results indicate that the macroeconomic and sectoral effects of biofuel investment in the context of Ethiopia are mixed. Biofuel expansion can help to improve economic growth if such expansion generates spillover effects, with jatropha and castor bean found to have the strongest positive impact on the economy. Without spillovers, the effect of biofuel investment on economic growth is negligible, indicating the importance of technology transfers. The impact on the external sector, especially on exports and imports, is negative, as biofuels expansion affects both the real exchange rate and production of export commodities. This negative effect might be mitigated by policies encouraging biofuels investment to move in a direction that does not compete with the use of land for traditional export crops.
    Keywords: biofuels, CGE model, economic growth, external sector, Ethiopia
    JEL: O11 O2 O47 O55 Q42
    Date: 2013–07–19
  24. By: Onjala, Joseph; Ndiritu, Simon Wagura; Stage, Jesper
    Abstract: This study uses household survey data from four Kenyan towns to examine the effect of households’ characteristics and risk perceptions on their decision to treat/filter water as well as their choice of main drinking water source. Because the two decisions may be jointly made by the household, a seemingly unrelated bivariate probit model is estimated. It turns out that treating non-piped water and using piped water as a main drinking water source are substitutes. The evidence supports the finding that perceived risks significantly correlate with a household’s decision to treat/filter unimproved non-pipe water before drinking it. The study also finds that higher connection fees reduce the likelihood of households connecting to the piped network. Because the current connection fee acts as a cost hurdle that deters households from getting a connection, the study recommends a system where households pay the connection fee in instalments, through a prepaid water scheme or through a subsidy scheme.
    Keywords: separated by commas
    Date: 2013–07–24
  25. By: KAINOU Kazunari
    Abstract: The Fukushima No. 1 Nuclear Power Reactor Accident in March 2011 caused radioactive pollution problems of various agricultural, forestry and fishery products in nearby Prefectures and government of Japan took production and shipment stoppage order for these products immediately. More than two years have already elapsed and most of the stoppage order has been cancelled due to the confirmation of the safety or establishment of pollution checking and control systems, and most of their prices and shipment quantities are recovered before the accident level. But some commodities especially produced in Fukushima prefectures are still suffering low prices and refusal of purchasing due to the consumer's concern of pollution although they are not actually polluted at all; let us call this phenomena as "rumor-based economical damages". The Tokyo Electric Power Company is liable for the damage and paying compensation for the damage including the "rumor-based economical damages" in accordance with the guideline of Government of Japan, but they are not sure whether the "rumor-based economical damages" are still existing, due to the simplification and speed up of the procedures of compensation payment; although that may cause some problems that the compensation may be used out of the original purposes. The author developed two quantitative judgment criteria to test the existence of the "rumor-based economical damage" using statistical methodologies such as average treatment effect, and applied them to the 34 major commodities in agricultural, forestry and fishery area of their trading price and quantity recorded by Tokyo Central Wholesale Market, and then analyzed and evaluated the results. The author found that the "rumor-based economical damage" still exists in various commodities in Fukushima Prefecture, same as only limited commodities such as vegetables and fruits in Ibaragi Prefecture, but the author could not find the phenomena in most of the area in Ibaragi Prefecture and almost none in Tochigi Prefecture. Then the author recommends that simplified compensation payment procedures should be applied only for Fukushima Prefecture and certain areas in Ibaragi Prefectures because of the continuation of the "rumor-based economical damage," but further checking systems should be introduced in other areas and other Prefectures where no such phenomena is found.
    Date: 2013–09
  26. By: Dev Nathan; Govind Kelkar; Yang Fuquan; Yu Yin
    Abstract: Abstract The paper deals with the role of tourism in reducing poverty in upland economies. Taking cases from China and India, it explores the local segments of the tourism value chain, or the local linkages of tourism. In assessing the impact on poverty it looks at both the local share of tourist expenditure and the size of the tourism sector. Local benefits are looked at from the points of view of both women and men as service providers. The paper brings out the important role of tourism as a form of non-farm employment in reducing poverty in upland economies.
    Date: 2013
  27. By: Walls, Margaret (Resources for the Future); Kousky, Carolyn (Resources for the Future); Chu, Ziyan (Resources for the Future)
    Abstract: Modern geographic information system (GIS) tools have allowed a more careful examination of how the physical characteristics of a property’s neighborhood and surrounding land uses are capitalized into property values. The ArcGIS Viewshed tool is a case in point: it identifies the cells in an input raster that can be seen from one or more observation points. In this study, we use the tool in a hedonic property value model that estimates a home’s sale price as a function of the percentage of its view that encompasses various “green” land covers—forest, farmland, and grassy recreational lands—as well proximity to such green spaces. We use 25 years of data from St. Louis County, Missouri, along with land cover data from 1992, 2001, and 2006, to estimate a property fixed-effects model. This approach, which minimizes the bias from omission of time-constant unobservable variables, is a methodological advance over some prior studies of the value of a view. We find that forest views negatively affect home prices, whereas farmland and grassy area views have positive effects (though only the farmland results are statistically significant). Proximity to each of these types of lands has value, however: more of each type in a close buffer around the property increases the property’s sale price. We hypothesize that our results are related to two factors: the topography of the study area and the fact that farmland has been converted to development over time, leading to a relative increase in its value.
    Keywords: hedonic pricing, view, open space, land cover, geographic information systems
    JEL: Q51 Q24 R0
    Date: 2013–08–02
  28. By: Carl Chiarella (Finance Discipline Group, UTS Business School, University of Technology, Sydney); Boda Kang; Christina Sklibosios Nikitopoulos (Finance Discipline Group, UTS Business School, University of Technology, Sydney); Thuy-Duong To
    Abstract: By employing a continuous time stochastic volatility model, we analyse the dynamic relation between price returns and volatility changes in the commodity futures markets. We use an extensive daily database of gold and crude oil futures and futures options to estimate the model that is well suited to assess the return?volatility relation for the entire term structure of futures prices. Our empirical results indicate a positive relation in the gold futures market and a negative relation in the crude oil futures market, especially over periods of high volatility principally driven by market-wide shocks. However, the opposite reaction occurs over quiet volatility periods when typically commodity-specific effects dominate. As leverage effect and volatility feedback effect do not adequately explain this reaction especially for the crude oil futures, we propose the convenience yield effect. We demonstrate that commodity futures markets in normal backwardation entail a positive relation, while futures markets in contango entail a negative relation.
    Keywords: Return-volatility relation; Commodity futures returns; Gold futures volatility; Crude oil futures volatility; Contango; Backwardation
    JEL: G13 E32 Q40
    Date: 2013–08–01
  29. By: Jing You; Samuel Annim
    Abstract: Abstract This paper assesses causal effects of formal microcredit on children’s educational outcomes by using household panel data (2000 and 2004) in a poor province of northwest rural China. The unobservables between borrowers and non-borrowers are controlled in static and dynamic regression-discontinuity designs. The static analysis reveals significant positive impact of microcredit on children’s schooling years (captured by late entry, failed grades and suspended schooling from time to time) in 2000 only, and no indication of influence on academic performance for both rounds of survey. The dynamic analysis shows progressive treatment effects of microcredit on both longer schooling years and higher average scores. Formal microcredit appears to improve education in the longer term compared to the short term, and hence may have potential in relaxing the grip of educational poverty traps.
    Date: 2013
  30. By: Karthik Muralidharan; Venkatesh Sundararaman
    Abstract: The large-scale expansion of primary schooling in developing countries has led to the increasing use of non-civil-service contract teachers who are locally-hired from the same village as the school, are not professionally trained, have fixed-term renewable contracts, and are paid much lower salaries than regular civil-service teachers. This has been a controversial policy, but there is limited evidence on the effectiveness of contract teachers in improving student learning. We present experimental evidence on the impact of contract teachers using data from an ‘as is’ expansion of contract-teacher hiring across a representative sample of 100 randomly-selected government-run rural primary schools in the Indian state of Andhra Pradesh. At the end of two years, students in schools with an extra contract teacher performed significantly better than those in comparison schools by 0.16σ and 0.15σ, in math and language tests respectively. Contract teachers were also much less likely to be absent from school than civil-service teachers (18% vs. 27%). Using the experimental variation in school-level pupil-teacher ratio (PTR) induced by the provision of an extra contract teacher, we estimate that reducing PTR by 10% using a contract teacher would increase test scores by 0.03σ/year. Using high-quality panel data over five years we estimate that the corresponding gain to reducing PTR by 10% using a regular civil-service teacher would be 0.02σ/year. Thus, in addition to finding that contract teachers are effective at improving student learning outcomes, we find that they are no less effective than regular civil-service teachers who are more qualified, better trained, and paid five times higher salaries.
    JEL: I21 M55 O15
    Date: 2013–09
  31. By: Issler, João Victor; Rodrigues, Claudia; Burjack, Rafael
    Abstract: The objective of this article is to study (understand and forecast) spot metal price levels and changes at monthly, quarterly, and annual frequencies. Data consists of metal-commodity prices at a monthly and quarterly frequencies from 1957 to 2012, extracted from the IFS, and annual data, provided from 1900-2010 by the U.S. Geological Survey (USGS). We also employ the (relatively large) list of co-variates used in Welch and Goyal (2008) and in Hong and Yogo (2009). We investigate short- and long-run comovement by applying the techniques and the tests proposed in the common-feature literature. One of the main contributions of this paper is to understand the short-run dynamics of metal prices. We show theoretically that there must be a positive correlation between metal-price variation and industrial-production variation if metal supply is held fixed in the short run when demand is optimally chosen taking into account optimal production for the industrial sector. This is simply a consequence of the derived-demand model for cost-minimizing firms. Our empirical evidence fully supports this theoretical result, with overwhelming evidence that cycles in metal prices are synchronized with those in industrial production. This evidence is stronger regarding the global economy but holds as well for the U.S. economy to a lesser degree. Regarding out-of-sample forecasts, our main contribution is to show the benefits of forecast-combination techniques, which outperform individual-model forecasts -- including the random-walk model. We use a variety of models (linear and non-linear, single equation and multivariate) and a variety of co-variates and functional forms to forecast the returns and prices of metal commodities. Using a large number of models (N large) and a large number of time periods (T large), we apply the techniques put forth by the common-feature literature on forecast combinations. Empirically, we show that models incorporating (short-run) common-cycle restrictions perform better than unrestricted models, with an important role for industrial production as a predictor for metal-price variation.
    Date: 2013–09–26
  32. By: Kousky, Carolyn (Resources for the Future); Walls, Margaret (Resources for the Future)
    Abstract: There has been growing interest among local governments in floodplain conservation as a flood damage reduction strategy. We evaluate one such investment—a greenway along the Meramec River in St. Louis County, Missouri. We estimate the opportunity costs of the conservation investment less the avoided flood damages from retaining the land as open space. To estimate avoided flood damages, we undertake a parcel-level analysis using the Hazus flood model, a GIS-based model developed for FEMA that includes a hydrology and hydraulics model coupled with a damage model relating flood depths to property damage. We examine the distribution of damages across parcels, demonstrating that careful spatial targeting can increase the net benefits of conservation. Finally, because creation of the greenway was motivated by the range of benefits it would provide, including aesthetic and recreational benefits, we undertake a hedonic model to estimate the capitalization of proximity to the greenway in property values. We find that the benefits of increased property values are roughly equal to the avoided flood damages, and that taken together, the floodplain conservation has generated net benefits.
    Keywords: floodplain conservation, benefit–cost analysis, hedonic model, hazus, floods
    JEL: Q51 Q54
    Date: 2013–07–25
  33. By: Khan, Haider
    Abstract: The main purpose of this paper is to explore the possibilities of industrialization and development in the 21st century. With an ongoing global financial and economic crisis with only a tepid recovery at the time of this writing(August 2013) as well as the still unfolding ecological crisis, the 21st century presents an even greater challenge for industrialization in the developing world than the post-WWII period. The changed global economic and ecological environment will shape the emergence of new technological and industrial paradigms and trajectories in significant ways (Dosi 2000, Khan 2004a). However, while the main thesis of this paper argues for a radical rethinking of development and industrialization within an ecological political economy framework in the 21st century, there are still many relevant lessons---positive and negative--- from the post-WWII development and industrialization experiences and discourses. Therefore, the next section focuses on the development and industrialization experiences of the post-WWII period. This section also focuses in particular on the successful Asian economies in order to bring out a number of still relevant insights. Section 3 discusses the problems of industrialization and innovation in the particular 21st century context for China. The problems revealed through this case study can highlight many of the challenges of development, industrialization and innovation in the 21st century. However, it must be pointed out that China is also a special case in many respects and poses some problems for itself and for the smaller developing countries by the strategy of development it has followed so far. The research strategy here is to both avoid the danger of falling into overgeneralization and to emphasize the need for a radical change in both the global economic environment and specific development and industrialization strategies. This is highlighted in section 4 of this paper where the outlines of an alternative development strategy are given.
    Keywords: Industrialization strategies, development strategies. Innovation, heterodox policies, industrial policies, China
    JEL: O1 P1
    Date: 2013–08
  34. By: Mukim, Megha
    Abstract: A large and growing informal sector is a major feature of developing countries. This paper analyzes coagglomeration patterns between formal and informal manufacturing enterprises in India. It studies (a) the causes underlying these patterns and (b) the positive externalities, if any, on the entry of new firms. The analysis finds that buyer-supplier and technology linkages explain much of formal-informal coagglomeration. Also, within-industry coagglomeration matters mostly to small- and medium-sized formal firm births. Traditional measures of agglomeration remain important in explaining new industrial activity, whether in the formal or the informal sector.
    Keywords: Microfinance,Water and Industry,Small Scale Enterprise,E-Business,Industrial Management
    Date: 2013–09–01
  35. By: Sinha, Pankaj; Mathur, Kritika
    Abstract: The current study focuses on the linkages in agri-processed (soy oil and crude palm oil) and energy commodities (natural gas and crude oil) traded on commodity exchanges of India (NCDEX; MCX) and their corresponding international commodity exchanges(Chicago Board of Trade; Bursa Malaysia Derivative Exchange; New York Mercantile Exchange). This paper examines the linkages in futures price, return and volatility of a commodity across commodity exchanges with the help of three models – (a) Price – Co-integration methodology and Error Correction Mechanism Model (b) Return and Volatility – Modified GARCH model (c) Return and Volatility – ARMA-GARCH in mean model (Innovations Model). The study indicates that there are strong linkages in price, return and volatility of futures contracts traded across commodity exchanges of India and their corresponding international commodity exchanges. Given the level of linkages, the study argues against the imposition of Commodity Transaction Tax (CTT) on sellers at the time of trading in agri-processed and energy commodities. The tax would lead to lower trading volumes thereby defeating the purpose of price discovery via commodity exchanges.
    Keywords: Futures, Commodity Transaction Tax, GARCH, Crude oil
    JEL: G13 G18 H2
    Date: 2013–06–28
  36. By: Jean Drèze (Honorary Professor, Delhi School of Economics and affiliated to the Department of Economics, Allahabad University); Reetika Khera (Indian Institute of Technology, Delhi)
    Date: 2013–08

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